Return to primary surpluses from 2023

The International Monetary Fund (IMF) predicts the reduction of the public debt from this year and the return to the primary surpluses from 2023 for Greece.

According to the Fiscal Monitor report, the Greek economy is expected to record a primary deficit of 7.3% of GDP, which is limited to 1.3% in 2022. After the primary surplus rises to 0.2% in 2023, it rises to 0, 6% of GDP in 2024, to 1% in 2025 and 1.5% in 2026.

This year, the de-escalation of public debt is expected to begin, which in 2020, according to IMF estimates, amounted to 211.2% of GDP.

It is estimated that it will be reduced to 206.7% this year and will fall below the limit of 200% of GDP (199.4%) in 2023. The de-escalation is expected to develop as follows: 192.4% in 2023, 188.2% in 2024, 184% of GDP in 2025 and 179.6% in 2026.

Early IMF repayment

Speaking to the Standing Committee on Economic Affairs of the Parliament, the Minister of Finance Christos Staikouras, during the discussion on the Draft State Budget 2022, stressed that one of the priorities is to return the real economy to normal, with targeted support for households and businesses and implementation of a prudent fiscal policy, in the direction of further reduction of taxes and insurance contributions.

At the same time, according to the Minister of Finance, preparations are being made for early repayment of part of the bilateral loans concluded by Greece in 2010 and the completion of the repayment of the IMF loans.

According to the government’s plan, the process of early repayment of 2.7 billion euros in bilateral loans and 1.8 billion euros in outstanding debts to the IMF is expected to be completed in the coming weeks.